Is the sky the limit for taxing foreign buyers?

Is the sky the limit for taxing foreign buyers?

Alex McFadyen
“Given the recent implementation of an increased tax to 20%, we’re likely to see the government hold off on any other changes for the immediate future.

It wouldn’t be surprising to see an increase again in the future, though at some point the cost of restricting foreign buyers could also significantly reduce demand and cost much more for Canadians by reducing house values. This might also restrict building, thus negatively impacting new supply and raising rental costs. Ultimately, the government would be smart to consult the industry and those in the know before making any more changes.”

Davelle Morrison
“Continually taxing foreign buyers discourages investment and movement to the province. It almost says, ‘I’ve given up on making housing affordable for locals, so instead I’ll scapegoat this segment of the population.’

The government should prioritize increasing the housing supply. Perhaps approvals for new condos take too long or include too many government charges. Perhaps developers should be allowed to build more storeys (i.e. low-income housing could be made a condition of building higher). Affordability is the issue our government must work to solve.”

Mike Lloyd
“At first blush, it seems like an easy tax because no one’s going to defend [those who pay it], but there’s been pushback from some sectors. It’s assumed to be a rich person’s tax, but young couples who want to move to BC who are just starting out are being affected by it. Canadians related to those who are coming in will have stories about how it’s hurting people as well.

This hike is probably the last time the government will touch it; they have gotten it in without much pushback, though further increases could make foreign immigration slow down severely.”